Doing Better With Global Diversification

In two previous posts, here and here, we shared a pair of Dimensional Fund Advisor videos based on historical U.S. market returns data. If we really want to share this tale of evidence-based investing in living color, we’ve got to go global. While global returns data doesn’t go back as far – 1973 vs. 1926 for U.S. returns – it still has its own important story to relate, which you’ll find in today’s video, “Doing Better with Global Diversification.”

As the title suggests, a globally diversified mix of stock investments (U.S. and foreign companies; large and small companies; etc.), with a focus on stocks with higher expected returns (small, value, profitable), has delivered significantly higher end returns compared to the S&P 500 (an index of 500 large U.S. companies) over the same timeframe with a similar level of volatility.

Need some help figuring out an appropriate, globally diversified stock/bond mix for you and your long-term financial goals? Check out some of our past posts on diversification, and/or we’d be happy to continue the conversation with you in person.

Click on the image below to start the video.

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With first-hand experience as a corporate executive, small-business owner and stay-at-home parent, Sheri is like a Swiss Army Knife: Her varied background has equipped her to help individuals and families cut through an array of financial complexities standing in the way of their most fulfilling lives.